1300 060 122 Call for Obligation Free Advice!

Bankruptcy And Your Income – Essential Facts

  • The aim of bankruptcy is to protect your income to ensure your essential needs can be met.
  • The amount of income you are entitled to keep depends on how many dependants you have.
  • Income you can retain per annum in after tax dollars is:
Threshold Amount
No Dependants $55,446.30
1 Dependants $65,426.63
2 Dependants $70,416.80
3 Dependants $73,189.12
4 Dependants $74,298.04
Over 4 Dependants $75,406.97
  • Amounts you earn over your ‘Threshold Amount’ in after tax dollars – you keep half and the other half is paid to your bankrupt estate.
  • The ‘Threshold Amount’ is adjusted twice a year, 20 March and 20 September.
  • A dependant is a person who resides with you that does not earn more than $3,452 per annum before tax (no tax payable at this level of income).
  • A husband and wife can each claim all their children as dependants.
  • The ‘Threshold Amount’ is increased by amounts paid through the Child Support Agency for the support of children from a previous relationship.
  • A separated couple can each claim their children as dependants if they have joint custody and they each have a bedroom allocated for the child.

Further and more detailed information on income during bankruptcy can be obtained from this website or by calling Alan Nicholls on 1300 060 122

Alan_edited

Alan Nicholls Bankruptcy Advice

Alan Nicholls specialises in assisting those in financial difficulty through the process of understanding & filing for bankruptcy. For more details see the contact information below: